Due to a $40 million collateral shortfall, the NEAR Foundation will terminate the algorithmic stablecoin USN

ChainCatcher news, the NEAR Foundation announced on Monday that the Decentral Bank (DCB) has recently declared that the NEAR native stablecoin USN has insufficient collateral due to some double minting related to the v1 algorithm, with a known collateral shortfall of $40 million. Furthermore, considering the increased regulatory scrutiny, the NEAR Foundation recommends that USN should be gradually wound down. The Foundation has chosen to reserve $40 million in fiat currency to provide a grant for creating a USN protection program.

The DCB official later stated that to ensure the USN protection program begins, the minting of new USN has been permanently halted, liquidity managed by DCB has been removed from the Ref.finance #3020 pool, and over 40 million USN has been burned. Approximately $5.7 million NEAR in the DCB treasury will be donated to the NEAR community. (source link)